Observer & Busness 5 May 2012 - Oman Daily Observer

MUSCAT — The Sohar Industrial
Port Company (SIPC)
in co-operation with Oman
PESCO LLC, which is specialised
in environmental protection
and oil spill response
services, conducted a live oil
spill response exercise in order
to test the emergency preparedness
and response capabilities
of the Port. The exercise
saw the participation of the
Ministry of Environment and
Climate Affairs, Sohar Environmental
Unit, Royal Oman
Police, C-Steinweg and other
Port of Sohar Tenants.
The exercise scenario featured
an imaginary spill that
resulted from a rupture in the
transfer line due to excessive
pressure while a vessel alongside
the berth was conducting
a bunkering operation. Upon
receiving the spill notification,
the Port Coordination Centre
notified the Emergency Duty
Coordinator (EDC).
The EDC then activated
emergency protocols and notified
stakeholders and relevant
parties. A specialised committee
attended the scene of
incident in order to assess the
situation. Based on the results
of the assessments, a response
strategy and an incident action
plan were formulated. In line
with the incident action plan,
the oil spill response team
from Oman PESCO was immediately
mobilised to site.
Upon arrival of the response
team, on-scene command
post was established
and site setup was completed.
Following that, deployment
of containment and protection
22 OMAN SATURDAY, MAY 5, 2012
Sohar port conducts live oil spill response exercise
High-profile speakers to attend
Oman Power and Water Summit
By A Staff Reporter
MUSCAT — The Sultanate’s most influential
power and water sector conference
will be held from May 6 – 9, 2012, with
a high-profile line-up of speakers set to
present on an array of topics at the heart
of this vibrant industry.
Now in its second year, the Summit
has been endorsed by all of the major
stakeholders, including the Public Authority
for Electricity and Water (PAEW),
Ministry of Regional Municipalities and
Water Resources, Authority for Electricity
Regulation – Oman, Electricity Holding
Company (EHC), Oman Power and
Water Procurement Company (OPWP)
and Rural Areas Electricity Company
(RAECO).
“The 2012 Summit builds on our
maiden event of last year by featuring
the most comprehensive speaker line up
composed of 60 senior industry experts
discussing key issues such as energy efficiency,
sustainable power and generation
capacity, renewable energy, security
and quality of the electricity and water
system. With over 300 local and international
attendees, this year’s event will further
entrench the Oman Power and Water
Summit as the signature B2B forum of
this vital industry,” commented Rozenn
Cornec, Divisional Director – Oman at
IQPC Middle East.
A roster of distinguished speakers will
take turns to offer enlightened perspectives
on the outlook for the power and
water sector in Oman. Key stakeholders
from the public and private power and
By A Staff Reporter
MUSCAT — Alpen Capital has announced
the publication of its research
paper – Trade and Capital Inflows
between GCC and India. The
report analyses the development of
bilateral trade (both merchandise
and services) and investment capital
flows over the last 10 years, thereby
highlighting key attributes that have
helped foster stronger economic
co-operation between the two
economies. It also covers the future
growth potential of trade and capital
flows between the two regions.
“Economic relations between India
and the GCC date back to several
centuries. However, the two-way
trade between the two regions has
strengthened over the last decade.
This is particularly due to the substantial
economic power attained
by these regions on the global map
following the spectacular economic
growth since 2003”, says Sameena
Ahmad, Managing Director at Alpen
Capital.
She continues, “FDI investment
from GCC to India has picked up
pace in the recent years but remains
negligible relative to trade flows in
terms of magnitude. It also represents
just a small percentage of total
FDI from GCC countries to the
world.”
“With the economic forecasts
pointing to strong GDP growth in
both the economies, we emphasize
that there is an ample scope
of strengthening economic ties be-
water industries, consultancy and construction
firms, finance and legal institutions
will exchange best practices and
discuss investment opportunities.
The list of presenters includes Mohammed
bin Abdullah al Mahrouqi,
Chairman, Public Authority for Electricity
and Water; John Cunneen, Executive
Director and Member, Authority for
Electricity Regulation, Oman; Ahmed bin
Saleh al Jahdhami, COO, Oman Power
and Water Procurement Company; Omar
bin Khalfan al Wahaibi, CEO, Electricity
Holding Company; Hussain Hassan
Ali Abdul Hussain, CEO, Haya Water;
Shankar Krishnamoorthy, President and
CEO, IPR-GDF SUEZ Middle East, Turkey
& Africa; Dr Brian Motherway, COO,
Sustainable Energy Authority of Ireland;
Richard Menezes, Executive Vice Chairman
and Managing Director, Utico; William
King, General Manager, STOMO;
Gerhard Scheffer, Vice President Sales,
Siemens Energy and Bruce Smith, Business
Adviser, Abu Dhabi Water & Electricity
Authority.
Setting the stage for four days of insightful
deliberations is the focus day
dedicated to energy efficiency, a key issue
for policy makers at a time of escalating
energy demand and dwindling energy
resources. Delegates will have the oppor-
tween GCC and India. While the
GCC needs to promote more industrialization
and SME participation
in order to realize its diversification
dream and create jobs for its rapidly
expanding population, India
needs to further improve its basic
infrastructure and reduce complexity
in the regulatory practices,” says
Sanjay Vig, Managing Director at
Alpen Capital.
He continues, “We recommend
GCC investors to further diversify
their investment portfolio by taking
positions in the promising Indian
investment avenues as the return on
investment remain relatively robust.
At the same time, due to its locational
advantage and abundance of
natural resources, GCC has the potential
to serve as a manufacturing
base as well as an export hub for
Indian companies”.
Trade Inflows
Bilateral merchandise trade between
India and the GCC has grown
substantially over the last decade
(CAGR of 35.9 per cent over 2001–
10 to $88.8 billion). Trade intensity
between the regions has also risen
led by numerous bilateral trade
agreements signed in the recent
past. Although the trade relationship
between India and the GCC remains
largely concentrated around oil,
other tradable items are also slowly
gaining importance due to the latter’s
diversification drive. Amongst
the GCC nations, UAE followed by
Saudi Arabia continue to remain the
largest trading partners for India.
tunity to interact with local officials and
international experts on policies, strategies,
technologies and best practices in
improving power and water networks
efficiency, optimising asset performance
and reducing costs.
Following the two-day main conference
on May 7 and 8, the workshop day
on May 9 will conclude the summit with
interactive sessions led by Oman Power
& Procurement Company, KPMG, Ernst
& Young, Clean Energy Business Council
MENA and Majan Electricity Company.
Attendees will have the opportunity
to further explore the planning, financing
and procurement of power generation and
water desalination capacity as well as the
adoption of renewable energy to improve
energy efficiency in the Sultanate.
Attesting to the Summit’s appeal is
the strong interest and support of well renowned
local and international solutions
and service providers within the power
and water industries.
“This is a must-attend event for authorities
and business executives who
wish to stay abreast of a dynamic GCC’s
utility industry. Not only is the sector
growing at a phenomenal pace, it is also
breaking new ground in such areas as privatization,
renewables, energy efficiency,
and rationalization of power consumption,”
C J Paul, CEO of Global Exhibitions
and Conferences LLC (GEC) said.
Oman Power and Water Summit 2012
has been organised by trade show specialists
Global Exhibitions and Conferences
LLC (GEC) in partnership with the leading
conference organiser International
Quality and Productivity Centre (IQPC).
Furthermore, the analysis of the
development in services trade by
both regions globally indicates the
demand for India’s services is rising
strongly in the GCC.
Capital Inflows
Apart from developing strong
trade relationships, both regions
have also been increasingly investing
in each other’s economy to
benefit from the attractive returns
on investments. Diversification
and spectacular economic growth
recorded by both the regions over
the recent decade have helped boost
cross border investments.
FDI to India from GCC
Capital flows in the form of FDI
from GCC to India have gathered
pace in recent years, cumulating to
USD2.6 billion over April 2000 to
January 2012. Accordingly, its contribution
to total FDI inflows into
India (on a cumulative basis) has in-
floating booms commenced in
order to contain the oil slick
around the vessel. Heavy
booms were deployed in order
to secure the port approach
channel to prevent oil slicks
from spreading outside the
port basin.
Oil skimmers and recovery
units were deployed to collect
the spilt oil from the water
which was then pumped to
fast intervention storage tanks
on the shore-side. Marine support
units were utilised to tow
the containment booms and to
provide logistical support.
Coast Guard patrol boats
secured the area of operations,
while ROP units including
civil defence and ambulance
were present on the shore-side
staging area.
The SIPC Emergency
Management Team and the
Oman PESCO Oil Spill Response
Team executed assigned
tasks in a highly professional
and timely manner
which gained the appreciation
and satisfaction of the specialised
observers and visitors
from participating authorities
and port tenants.
Lieutenant Colonel Juma’a
al Sa’adi, the Officer Incharge
of the Oil & Gas Installation
Security Police Station
in Sohar Industrial Port, said
that it is very important that
such exercises are conducted
in industrial areas and ports
MUSCAT — An ardent champion
of entrepreneurship,
McDonald’s Oman (Al Daud
Restaurants LLC) will be a
key participant in a forum on
‘Franchising’, designed to
shed light on what it takes to
bring a franchise to Oman and
to build a business around it.
‘Franchising: A Panel
Discussion’ will be held at
Sultan Qaboos University on
May 6, 2012. The event has
been organized by the Muscat
American Business Council in
association with McDonald’s
Oman and Sultan Qaboos University.
The panel discussion is the
centerpiece of a forum that
will look at various aspects
of the eco-system surrounding
entrepreneurship. There
will be presentations from the
creased from 0.6 per cent in 2005 to
1.7 per cent as of January 2012.
Although FDI from GCC to India
has picked up in recent years, it
remains negligible relative to trade
flows in terms of magnitude and
largely represents rising investments
by expatriates. Cumulative
FDI investments (April 2000 to
January 2012) represented less than
3 per cent of the annual bilateral
merchandise trade flows reported
in 2010. Except Oman and UAE,
investments from other GCC countries
into India remain negligible
compared to their global investments.
However, India has encouragingly
stepped up efforts to attract
investments by further relaxing
regulatory restrictions and inviting
GCC investors to actively participate
in India’s robust growth story
and benefit mutually. The power,
services and construction sectors
continue to account for the largest
share of FDI inflows from the GCC
to India.
FDI to GCC from India
Although FDI data from India
to the GCC is not widely available,
general information from individual
country's investment agencies reveal
that India has been one of the
major sources of FDI flows into the
GCC and is the third-largest investor
in the UAE. Indian businesses
have been able to establish a strong
presence in the GCC due to the huge
Indian diaspora in the region
Although India’s FDI participation
in the GCC is growing strongly,
in order to test the level of
emergency preparedness and
to develop the capabilities of
participants. He also said that
the continuity of emergency
exercises is essential. “The
exercise was very good, and
the level of preparedness that
was displayed by both, Port of
Sohar and the response company
was distinguished”, he
said suggesting that the next
exercise address a tier-2 spill
incident (national level).
Suwaid al Shamaisi, Executive
Manager of Corporate
Affairs for the Sohar Industrial
Port Company, stated: “In line
with the social responsibility
that the Sohar Industrial Port
is committed to, this exercise
has been planned and executed”.
Al Shamaisi indicated
that the primary objective of
this exercise was to verify the
level of preparedness for dealing
with oil spill incidents.
During the exercise, the ability
of the response organisation to
mobilise and deploy response
resources in a timely manner
was tested. He also added “the
exercise was a good platform
to enhance the interaction and
co-operation between the various
stakeholders and relevant
parties”.
Al Shamaisi also said that
this exercise is only the first
in a series of exercises aimed
at enhancing emergency preparedness
and that exercises
Ali K Daud
Ministry of Commerce and Industry
detailing the procedures
for setting up a business, financial
institutions, banks and
otherwise will give presentations
on their SME lending
programmes, and a number
of local franchisees will share
their experiences in setting
up successful franchises in
of different tiers shall be conducted
on regular basis. “I
would like to thank all those
who participated in planning
and executing the exercise.
The level of co-operation and
participation was very good.
Such exercises greatly contribute
to the development of
trained cadres that are able to
deal with incidents on the national
scale”, he added.
Eng. Abdul Hakeem al
Harthy from the Oil Pollution
Operations Centre at the Ministry
of Environment and Climate
Affairs, said: “It is well
known that oil spill incidents
can have catastrophic consequences
on the environment.
As such, the Ministry of Environment
and Climate Affairs
has established the National
Oil Spill Contingency Plan
(NOSCP). The national strategy
established in the NOSCP
also covers multi-organisation
response exercises. This exercise
was very good which
was in-line with the NOSCP;
we certainly encourage such
exercises”.
Ayman M Naguib, Crisis
Management and Oil Spill
Response Consultant praised
the exercise.
He said: “Port of Sohar
adopts a serious policy based
on scientific methodologies
that warrant the necessary
level of preparedness to deal
with various emergency situ-
Oman. Also in attendance will
be international legal experts
who will provide insights on
Franchise Agreements.
Representing McDonald’s
Oman on the distinguished
panel will be Ali K Daud, development
licensee and president,
who will talk about his
personal experience as a Mc-
Donald’s franchisee and Mc-
Donald’s success story as an
iconic global brand.
“The franchising seminar
is a great opportunity to
showcase to prospective entrepreneurs
the eco-system of
entrepreneurship. We want to
bring together all the stakeholders
when it comes to entrepreneurship
and address the
young minds in order to ignite
the passion in them to follow
their dreams and show them
ations, including oil spills.
The policy adopted by the
Port is based on sound emergency
planning and proactive
measures rather than reactive
response”. He also added:
“The response framework
adopted by the Port relies on
the development of trained
and qualified response cadres
in addition to the provision of
specialised response equipment
in line with international
standards. Furthermore, a
comprehensive training and
exercising programme has
been designed to cover both
Port and Tenants’ personnel”.
The effectiveness of this
policy was evident during this
very successful exercise that
we witnessed today. It goes
without a doubt that Port of
Sohar is currently leading
the way towards establishing
credible response mechanisms
within the maritime
sector in the Sultanate”.
This exercise which was
code named Northern Star 1,
confirms that Sohar Industrial
Port take their environmental
responsibilities seriously and
that the Port’s management
is committed to maintaining
emergency preparedness and
response capabilities to the
highest international standards.
SIPC considers the protection
and preservation of the
pristine Omani environment
as utmost priorities.
McDonald’s success story to be
highlighted at SQU seminar
there is potential for further growth
as the total investment remains small
in comparison to Indian investments
in to the rest of the world. Software
development and engineering services,
tourism, readymade garments,
chemical products, agricultural and
allied services continue to generate
majority of the interest from Indian
corporates.
Apart from these, a number of
Indian companies have collaborated
with national players in the areas
of designing, consultancy, financial
services and software development.
Although India’s investments in
the GCC have been largely driven
by Non-resident Indians who had
historically set up businesses in the
region, businesses of Indian origin
are also increasingly setting up footprint
in GCC.
Alpen Capital highlights significant
scope for mutual co-operation
between India and the GCC given
their complementing economic
profiles.
Over the years, GCC has developed
capabilities and experience
in energy, telecom, construction,
real estate and infrastructure sectors.
These sectors are also growing
fast and offer potentially attractive
opportunities in India, which has
strong expertise and scale in commercial
services (financial, ITES)
manufacturing, small and medium
scale enterprises, food processing,
and education, among others.
The GCC is relatively lacking in
these areas and increasingly looking
for technological know-how,
managerial expertise and foreign
collaborations to build sustainable
models for development.
Growing Indian businesses
could invest in several of high prospect
avenues in GCC and use the
region as a strategic hub to access
regional markets in Africa, Iran,
Iraq, and CIS countries amongst
others.
As part of the diversification
plan, the GCC is prioritizing export
of high order goods (finished
goods). Thus, Indian corporates
could participate and use the GCC
region as a re-export hub for their
refining operations (value added
products), mainly as the lower input
cost and robust infrastructural support
in the block offer favourable
investment environment. Moreover,
due to strong cultural, historical and
bureaucratic familiarities, GCC nations
believe the scope for co-oper-
it is possible to fulfil those
dreams. Also, as one of the
world’s top 20 companies that
has demonstrated excellence
in entrepreneurship, I will be
proud to share McDonald’s’
groundbreaking success in
creating many SMEs worldwide,”
Ali Daud said.
“The franchise seminar will
serve as ‘food for thought’ for
students and aspiring entrepreneurs
and is an excellent
platform that brings together
SMEs, the Ministry of Commerce
and Industry and financial
institutions. Through this
initiative, we hope to help foster
the development of small
and medium size commercial
enterprises in this Sultanate,”
said Emmee Haun of the Muscat
American Business Council.
GCC-India bilateral trade surges to $88.8 billion: Alpen Capital
Sanjay Vig
Qtel first quarter revenue grows 8 per cent
MUSCAT — Qatar Telecom
(Qtel) has announced that
Group revenue increased
by 7.6 per cent to end the
period at QAR 8.0 billion
(Q1 2011: QAR 7.5 billion),
driven by service excellence
and the roll-out of new services.
The Group’s consolidated
customer base stood at 84.4
million (Q1 2011: 75.6 million),
representing growth
in customer numbers of 11.7
per cent. EBITDA for the
same period increased 8.0
per cent to QAR 3.8 billion
(Q1 2011: QAR 3.6 billion).
EBITDA margin remained
robust throughout the period
Sameena Ahmad
at 48 per cent (Q1 2011: 48
per cent).
Net profit attributable to
Qtel Shareholders decreased
by 12.2 per cent at QAR 0.7
billion (Q1 2011: QAR 0.8
billion), mainly due to foreign
exchange losses in Indonesian
operations.
Highlights of the period
included sustained performance
in Iraq, Qatar, Algeria
and Tunisia; the commercial
launch of Qtel Fibre; and the
agreement for the sale and
leaseback of approximately
25 per cent of the Indosat
tower portfolio, for a total potential
consideration of $519
million.
ation with India is better relative to
any other Asian economy (including
China).
Recommendations
With ample funds available for
investment, GCC sovereigns and
companies should further diversify
their portfolio mix toward highgrowth
markets such as India which
are recording robust growth and offering
sound investment returns.
Although the Indian government
has undertaken a number of
commendable steps to attract FDI ,
it still has to improve several factors
to create a conducive investment
environment in India including
reducing restrictions on foreign
trade regulations and eradicating
bureaucracy.
While political stability (in
countries such as Bahrain) and
eradication of bureaucracy are warranted
for investment attraction,
the GCC region should establish a
competent block level investment
authority in each country which can
impart transparency and guide investors
toward potential investment
avenues across the region. Official
publication and databases should
also be made widely accessible and
regularly updated.
In order to realize its diversification
initiatives, the GCC should
further promote foreign industry involvement
by relaxing regulations
and encouraging SME participation
which will create employment opportunities
as well as increase GDP
growth.